Surjadi ignorant of waste plan

JAKARTA (JP): Governor Surjadi Soedirdja has denied knowledge of the intentions of a private Malaysian firm to work with the city in managing its waste.

He was responding to reports that the private construction and infrastructure firm, Bescorp Industries Bhd, had entered an agreement to jointly privatize waste management with a group called Task Force Indonesia.

The new joint venture would be called PT Malindo Cipta Nusantara, New Strait Times daily reported Wednesday.

Surjadi said Friday he had not even "smelled" such news, although he said such a cooperation was possible in the future.

The report said the US$2 billion project covered a 50-year concession. Bescorp would hold a 60 percent stake while the city's sanitation agency would have 20 percent.

PT Malindo would have an initial paid-up capital of $8 million for its stake in the company.

According to the report, which quoted a statement of Perwira Affin Merchant Bank Bhd on behalf of Bescorp, Bescorp will receive a minimum monthly revenue of $30 million for waste collection in Jakarta.

The agreement also covered waste disposal, recycling and marketing of processed waste. (11/anr)